Money & Debt · Homestead (creditor protection)
Homestead Exemption from Creditors in Maryland
How much of your home equity is shielded from a judgment creditor in Maryland, what the exemption does not stop, and how to claim it, cited to the statute.
What is protected in Maryland
The equity shielded from creditors, how it applies, and the debts it cannot stop.
| Rule | In Maryland | What it means |
|---|---|---|
| Applies automatically | Must be filed | This is a bankruptcy-only exemption that must be affirmatively claimed in the bankruptcy schedules. It cannot be claimed outside of bankruptcy, where only a small general exemption applies to real property. |
| Married or co-owned | See note | Married spouses may not double the exemption. |
| Federal alternative | Bankruptcy | The $125,000 figure applies only in a bankruptcy case, and only to cases filed on or after June 1, 2026 under SB 939. It is not a general creditor exemption. Outside of bankruptcy, Maryland has no comparable homestead, so a homeowner facing an ordinary judgment creditor can shield only a small general exemption in real property, not $125,000. Before June 1, 2026 the bankruptcy cap tracked the federal 11 U.S.C. §522(d)(1) figure. |
| Statute | Md. Code, Cts. & Jud. Proc. §11-504(f) | The controlling authority. Read the full text through the source link below. |
Equity protected: $125,000 (bankruptcy)
Under SB 939 (effective June 1, 2026), owner-occupied residential real property is exempt up to $125,000 in bankruptcy (also covering a home held in a revocable trust), and the cap is now adjusted annually for CPI. The change applies to cases filed on or after June 1, 2026. Before that date the cap tracked the federal §522(d)(1) figure.
Does not stop
Does not stop a consensual mortgage or lien, does not apply outside a bankruptcy case, and is barred if the debtor or a qualifying family member claimed the homestead in the prior eight years (§11-504(f)(2)).
Under SB 939, the $125,000 cap is adjusted annually for the Consumer Price Index starting from its June 1, 2026 effective date. Confirm the current CPI-adjusted figure before you rely on it, because the amount available may be higher than $125,000.
SB 939 takes effect June 1, 2026 and applies to bankruptcy cases filed on or after that date. It raised the exemption to $125,000, made it CPI-indexed annually, and extended it to homes held in a revocable trust. For a case filed before that date, the older cap that tracked the federal §522(d)(1) figure applies, so confirm which rule governs your filing.
What you can do right now
Concrete, neutral steps to protect home equity in Maryland. This is legal information, not legal advice.
- Know it is a bankruptcy-only exemption
The $125,000 protection applies only in a bankruptcy case, and only to cases filed on or after June 1, 2026. Outside of bankruptcy, a Maryland homeowner can shield only a small general exemption in real property, not $125,000.
- Confirm which cap applies to your filing
SB 939 takes effect June 1, 2026. For a case filed before that date, the older cap that tracked the federal §522(d)(1) figure applies. Confirm the filing date and which rule governs before you rely on the $125,000 amount.
- Check the eight-year and CPI details
The exemption is barred if you or a qualifying family member claimed the homestead in the prior eight years under §11-504(f)(2), and the $125,000 cap is adjusted annually for CPI. Confirm the current figure and your eligibility.
- Get Maryland help with bankruptcy
Because this exemption exists only in bankruptcy, a bankruptcy attorney or legal aid office can confirm whether filing protects your home, which cap applies, and how to claim it in the schedules.
This is general legal information, not legal advice. Liens, bankruptcy choices, and local rules can change how the exemption applies to your home.
What people get wrong in Maryland
First, a distinction that trips up almost everyone: this is the homestead exemption that protects your home’s equity from creditors, not the separate property-tax break that also uses the word homestead. Maryland is unusual, so read carefully. Under SB 939, effective June 1, 2026 and codified at Md. Code, Cts. & Jud. Proc. §11-504(f), owner-occupied residential real property is exempt up to $125,000, but only in bankruptcy. The change applies to cases filed on or after June 1, 2026, the cap is now adjusted annually for CPI, and it also covers a home held in a revocable trust. What matters most is the limit: this is a bankruptcy-only exemption that you must claim in the bankruptcy schedules, and it cannot be used outside bankruptcy, where only a small general exemption applies to real property. It never defeats a consensual mortgage or lien, and it is barred if you or a qualifying family member claimed the homestead in the prior eight years under §11-504(f)(2).
Common questions
How much home equity is protected from creditors in Maryland?
In bankruptcy, up to $125,000 under SB 939 for cases filed on or after June 1, 2026, adjusted annually for CPI. Outside of bankruptcy, Maryland has no comparable homestead, so a homeowner facing an ordinary judgment creditor can shield only a small general exemption in real property.
Is the Maryland homestead exemption automatic?
No. It is a bankruptcy-only exemption that must be affirmatively claimed in the bankruptcy schedules. It cannot be claimed outside of bankruptcy at all, and it is barred if you or a qualifying family member claimed the homestead in the prior eight years under §11-504(f)(2).
Does the Maryland homestead exemption stop a foreclosure?
No. The exemption protects equity in a bankruptcy case, not from a debt secured by the home. It does not defeat a consensual mortgage or lien, and it does not apply outside a bankruptcy case. A mortgage can still be foreclosed despite the exemption.
Does the Maryland homestead exemption double for a married couple?
No. Married spouses may not double the exemption. The $125,000 cap under SB 939 applies without a doubling for spouses, and it exists only in bankruptcy for cases filed on or after June 1, 2026.
What is the difference between the homestead creditor and homestead tax exemption in Maryland?
They are different protections. The creditor exemption on this page shields home equity in bankruptcy. The Maryland Homestead Tax Credit limits how much your home’s taxable assessment can rise each year to cut your property tax bill. One is asset protection, and the other is a tax break.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.